Home Building Articles
Waivers Should Be Tied to Each Payment
Lien waivers shouldn’t be treated as something to obtain without a set schedule. In order to create a successful lien waiver policy and obtain a
maximum amount of protection from potential financial risk, you must create a structured and ordered policy. Each payment should be associated with a
lien waiver.
If waivers are specifically tied to the proper payments, use fair waivers templates that are specifically formulated to waive only the amounts actually
associated with the payment to which they are attached, and are distributed and obtained from all the parties associated with the payment. A top-tier
party can basically eliminate the risk of valid liens being filed against the project.
Once the payment occurs, the waiver immediately relinquishes the right to lien for that amount. This seems simple, but by proactively providing lien waivers
(something very few parties are willing to consider doing), a lower-tier party shows that it is willing to be fair and remove a step from the payment
process. This is a good way to build relationships, get more business and get paid faster. Rather than being complicated documents with a difficult process
that it seems to be, lien waivers can be the simple solution to solving some construction payment problems.